With human capital management taking center stage in corporate strategy, measuring the performance of talent acquisition campaigns has become important. This requires tracking key metrics that can indicate the effectiveness of a recruitment campaign and point out areas where improvement is required.
Most Frequently Measured Talent Acquisition Metrics
1) Time to Fill
Time to fill, or time to start, is a common metric in recruitment that measures the average number of calendar days from the date a job requisition is approved to the date that a new hire begins work.
As per a recent Society for Human Resource Management (SHRM) report, most large organizational typically fill a position in 43 days while smaller companies take 29 days to fill.
This metric allows recruiters to determine the effectiveness and efficiency of the hiring process and to manage hiring expectations across the company.
2) Cost per Hire
Cost per hire is calculated by summing up all recruitment expenses, including advertising, agency, travel, interviewing, relocation expenses, referral bonuses, and HR departmental costs, and dividing it by the total number of new hires for the calendar year.
According to SHRM, the cost-per-hire for small organizations (less than 1,000 employees) is around $3,079 while larger companies have a cost-per-hire of $4,285.
Cost per hire allows managers to understand how much they are currently spending on hiring individuals and if there are improvements that can be made to the hiring process, such as bringing in an agency or recruitment process outsourcer (RPO) to more effectively manage costs.
3) Quality of Hire
Many companies measure the quality of their hires by tracking turnover and looking at performance appraisal ratings. Since this metric can vary by organization and industry, it’s difficult to report on. However, once an internal benchmark is set, HR professionals can begin to assess quality of hire. ERE, a recruiting community, suggests defining quality of hire as how well a new hire meets the performance needs of the position.
4) Source Origin
Managers find it valuable to discover the sources of applicants, as this shows which recruiting channels are the most effective in attracting candidates to the organization. It also reveals how various sources compare in terms of quality, quantity, speed, and effectiveness.
To find the percentage rate for a specific source, divide the number of source hires by the number of external hires.
5) Candidate Satisfaction
Candidate satisfaction data is driven by the percentage of new hires that are satisfied with the hiring process. Candidate satisfaction surveys help organizations determine if the recruiting process has a positive impact on the employment branding of the company.
6) Pipeline Development
Pipeline development refers to the number of potential candidates that a recruiter has developed relationships with for key strategic positions. Often this data is managed through an effective candidate relationship management system. Similar to tracking pipeline development of sales personnel, measuring recruiter candidate pipelines can improve time to fill, cost per hire, and quality of hire.